Salary expectations among fresh graduates remain high, but outcomes tell a different story, according to the Unstop Talent Report 2026. While 73 per cent of undergraduate students anticipate salaries exceeding Rs 5 LPA, only 40 per cent manage to secure such packages. Despite 88 per cent of companies actively hiring and 90 per cent maintaining or increasing recruitment budgets, placement figures remain underwhelming.

A significant 84 per cent of undergraduate students are still unplaced, and engineering graduates are not far behind, with 85 per cent yet to find jobs. Additionally, 17 per cent of students report delayed or withdrawn job offers, added the report.

Even among those placed, high salaries remain elusive. Only 14 per cent of freshers earn above Rs 9 LPA, although 60 per cent aspire to reach that level. The perceived value of degrees is also weakening; 30 per cent of MBA graduates earn less than Rs 10 LPA, while 39 per cent of engineers earn less than Rs 7 LPA.

From Degrees To Skills: A Structural Reset

Ankit Aggarwal, Founder & CEO of Unstop, shares the reality, "The salary gap isn't a market crash; it's a structural correction. For too long, pedigree was a proxy for pay. India Inc. is done paying for 'potential'. They are hiring for 'Day One' contribution."

Recruiters are increasingly prioritising demonstrable skills over academic credentials. Fields like AI/ML, Data, Cloud, and Cybersecurity are now considered markers of premium talent. In fact, 94 per cent of employers say they have moved beyond traditional pedigree-based hiring.

The shift is clear: what you can do matters more than where youstudied.

AI Is Changing The Entry-Level Game

Dr Poornima Gupta from Great Lakes Institute of Management highlights another key disruption in an NDTV report: "Technology, particularly AI, is eroding the bottom layer. Companies are experimenting if they can do away with that bracket, and automate entry-level tasks." This creates a paradox. While 80–86 per cent of students are already using generative AI tools during job applications, over half lack formal AI training. Meanwhile, companies are deploying AI for screening (57 per cent) and conducting AI-driven interviews (55 per cent).

Students are leaning on AI to get hired, while companies use it to filter candidates more aggressively. The result: fewer entry-level roles and lower starting salaries. "For youngsters, they will have to accept lower salaries. The number of high-paying jobs is limited, while the cost of education keeps rising," Dr Gupta added in the report.

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